It has greatly shaped what the kingdom is today. Having started out as somewhat of a tourist economy, the kingdom has become a world, monetary power. From their massive amounts of oil and extremely cheap production, the country has been able to gain large amounts of affluence and political power. With its large abundance of oil, the country has been able to profit immensely on sales and spur diplomatic outcomes to their benefit due to the great need of the resource. Without the discovery oil, Saudi Arabia would be of little importance in the modern world, having the Grand Mosque be the extent of its importance.
As the years passes a new world order is coming, with emerging markets being at the top of the list. People are invested in emerging markets with the prospect of high returns, as measured by Growth Domestic Product (GDP), due to the fact that those countries are experiencing fast economic growth. However, those investments also involve high risk due to domestic infrastructure problems, limited equity opportunities and political instability. In 2003, Goldman Sachs, an American multinational investment banking company, issued an investment report where BRIC was invented. BRIC represented the states and economies of Brazil, Russia, India and China.
The Saudi economy is changing tremendously recently. It has taken short period to grow from agriculture economy to global economic power with modern infrastructure. Petroleum and oil products were the reason for the growth. Nowadays not only the country export petrol and oil products but also it exports other products. The government also issued laws to facilitate the transportation of trade from the kingdom to other countries.
In 1969, UAE launched its first oil tanker from Fetah Field thus making even more profit possible and allowing the country to form a respectable military among the Arab Middle East countries. The trade empire is growing by the year because of its set domestic economic rules against all trades. In Jebel Ali, an American asset of a Sea Port of Debarkation (SPOD), the trade policies and based on a free trade zone. A free trade zone is a secured way where there are no tariffs or high production costs. Ports lie across the north and west of the country with a major trade route that begins with the Straits of Hormuz.
The Oil States - Saudi Arabia, Iraq, and Kuwait Crude oil is a staple in modern society. Crude oil is an extremely efficient energy source giving out about 100x the energy it takes to garner it. Hence, for the century, man has been extremely dependant on petroleum using it primarily to fuel means of transportation. As a result, wars and various conflicts have been waged over control of oil fields in the Middle East. The United States, being the largest consumer of oil in the world is tightly tied to the economics of the Middle East.
Crude oil is such an essential part of our modern lives that we can often take for granted that our supply of it will remain constant. Small, unstable countries often hold great amounts of this precious resource, along with the ability to cut our supply in a moment’s notice. Therefore, the discovery of oil in Saudi Arabia caused a dramatic increase in the revenue of the country. Saudi Arabia’s newfound wealth was exploited to serve the political and economic needs of an opportunistic Islamic monarchy, while the concerns and rights of its subjects were consistently cast to the wayside. Through a global trade network, Saudi Arabia found great prosperity at the cost of sacrificing its founding principles.
Today the main Kuwait commercial port its economic continues. Kuwait natural resources include: petroleum, fish, and natural gasses. The economy depends on oil without it the country would not survive. The money in Kuwait is called Kuwaiti dinar. What is Kuw... ... middle of paper ... ... follows a system of constitution monarchy with a parliamentary system of grow.
Saudi Arabia is a primarily oil-based economy, with oil being the most important component of the nation’s rapid economic development since World War II. U.S. geologists discovered oil in the region in the 1930s, and since exports expanded most notably in the 1960s, production and rich revenues have been seemingly limitless. The amount of oil in Saudi Arabia’s reserves amounts to close to a quarter of the world’s entire oil resources, and today the country produces about 10,000 barrels a day. As a result, the valuable resource currently accounts for 90% of the country’s exports and contributes to 75% of government revenues annually. During the 1970s, following the Arab-Israeli war, Saudi Arabia’s economy was one of the fastest growing in the world due to a sharp increase in the value of petroleum.
Historically, the seven emirates were autonomous sheikhdoms until they were united as the UAE in 1971 (Gallant, 2008). UAE is one of the dynamic trading hubs in the Persian Gulf. However, the economic development since the discovery of oil in 1966 has been remarkable. Before the oil boom, people in UAE survived through fishing, pearling and limited trading. The growth that this transformation brought has enabled the swift progress, which assisted a large non-oil economy.
Saudi Arabia remains a very conservative society combining strong traditions with a strict interpretation of Islam (Al- Rasheed pp6). However, the discovery of oil in the Saudi desert territories has made it necessary for the country to quickly modernize in order to fully benefit from the resource. Large oil deposits were discovered in 1938 making Saudi Arabia the first oil-exporting country in the world. Oil revenues resulted in drastic changes in the society, especially during the past 30 years. Oil provided the Saudi state with extraordinary wealth to build the economic and material infrastructure of the country, transforming the state into a rapidly modernizing landscape.